Chinese Cancelation Deemed Negative for Soybean Futures

Things just aren’t going right for Brazil’s soybean exports and the shipping delays are really taking a toll on soybean futures.  A major news organization has reported China canceling nearly 2M metric tons of Brazilian soybeans due to the shipping delays.

It was reported “grain trucks” were backed up for 15 miles to deliver soybeans to the major grain shipping port in Brazil.  This country is expected to supersede the US as the world’s number one soybean exporter, but they’re not going to be able to do that if the product can’t be shipped out…!

Barb Levy, chief director for Futures & Options Xecution’s futures division in Chicago, had this to say regarding the current soybean futures situation, “…world buyers (are) looking to other countries for imports as an alternative to US soybeans. South American supplies have moved onto the market, and Argentina’s (soybean) crop is expected to begin flooding the market as well.”  Levy adds, “Brazil is still trying to settle delays with shipments but they have a huge (soybean) crop also set to move onto the world market.”

Soybean futures have just rolled back over to a down-trend recently on my daily chart work.  A closer inspection on weekly charts show soybean futures trading in a consolidated sideways pattern since early November.  I’m in no immediate rush to get involved with soybean futures market’s in the near-term.

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